Since CCECA is a distribution
cooperative, our electric power is purchased through a generation cooperative. The cost of
the fuel used to generate electricity fluctuates from month to month. This change in fuel
cost is passed on from the generation cooperative to CCECA and to its members through a
Power Cost Recovery Factor or PCRF. The PCRF is multiplied by the number of kWhs
each member uses that month and allows CCECA to recover the charge for power costs.

So, when fuel costs increase, a member will pay more per kWh through a larger PCRF.
When fuel costs decrease, a member will pay less per kWh through a smaller or sometimes
negative PCRF.

An example is shown below:

FOR A RESIDENTIAL MEMBER USING 1,000 kWh PER
MONTH AND
A PCRF OF 0.0012345, THE CHARGES ON THE BILL WOULD BE: